Skype mess: How far will this go?

Re:Skype mess: How far will this go? by rdl on Saturday June 25, 2011 @12:29PM (#2695969)

I would expect nothing better from a PE firm in a restructuring, but I'd like to see Andreessen Horowitz (and ideally also Microsoft) respond to this. a16z's reputation among top-tier hires at portfolio companies (and thus their reputation with entrepreneurs) is worth more to them than their gains from the Skype deal.

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Re:Skype mess: How far will this go? by dstein on Saturday June 25, 2011 @12:34PM (#2695975)

  a16z's reputation among top-tier hires is worth
  more to them than their gains from

I really doubt anyone's reputation is worth more than 6 billion dollars.

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Re:Skype mess: How far will this go? by rdl on Saturday June 25, 2011 @12:56PM (#2696024)

They didn't own 100% of the company; probably more like 5-10%. So it's really less than 1x on one of their funds at stake here.

Plus, it's not like it was "do this deal like this, or walk away entirely". What is at risk is either the $100-200mm to fix the options concerns for everyone, or at most, the breakup fee for this deal with Microsoft. Skype probably could find another buyer, even without the Microsoft deal.

Maybe Microsoft overpaid by 2x their nearest competitor. So, a16z only made $200-400mm on this vs. the best alternative (and really, I think it's less than 2x).

The reputation of a top multi-stage fund is worth more than $400mm for sure.

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Re:Skype mess: How far will this go? by fragsworth on Saturday June 25, 2011 @01:35PM (#2696095)

Steve Jobs.

Although you're otherwise probably right.

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